Newb looking for multifamily in SGV

[Fernando Avila]

Hello BP! I am just starting to get in the game and I would appreciate any advice.

I live in San Gabriel, CA and I'm looking for my first multifamily property to invest in. I have been looking in LA and SGV but not really finding anything worth the price. Is there any other area I should be looking? What would you recommend? Thanks and have a great day

[Sanjeev Advani]

@Fernando Avila welcome to BP.  Glad you are starting to move forward.  Here is my two cents:

- If you are looking to start investing, I would look into an area that can give you cash flow, and is within a drivable distance.  I would recommend this for your first property, mainly because you can get used to being a landlord, and even if you have a property management company, you can go ahead and drive the property and make sure everything is taken care of as it should be.  Your cash flow in state may not be as good as out of state, but at least you will be earning a positive cash flow and you are able to learn a little more about distance land lording without being too far

- Based on your previous comment about the better choice between Bakersfield and Vegas: Clearly the population is a factor, and growth of that population is even more important.  My speciality being Bakersfield, I can say that our population has grown at a healthy pace for the previous few decades, and we have good reason to believe that the growth in Bakersfield will only increase at a faster pace than it already has.  In some cases people say that the population could increase 3-fold over the next 10 years

- As far as jobs are concerned, Bakersfield (which was previously known as an Ag and Oil town) is still heavily invested in Ag and Oil, but are starting to diversify based on the location of the city versus other replicable factors.  A large industry that has recently been growing immensely in the area is supply chain/logistics.  These jobs are often white collar, educated jobs that earn higher incomes.

- As far as economy, Bakersfield is going through massive changes in infrastructure and also some of the largest development/re-development projects in the cities history.  I can more in depth if you would like as well.

- Climate for Bakersfield is actually more mild than that of Las Vegas and also closer to the ocean!

- In my opinion, this is where Bakersfield is lacking.  The new developments are going to bring some different attractions to Bakersfield which will increase it, so I think we will increase our attractions inside the city over the next few years.  Again, I have to go back to location, in that we are in close proximity to LA and the beach.  Many people enjoy the proximity to mountains, ocean, and large cities for entertainment. 

Sorry for the lengthy response, but I hope it helps!

Feel free to PM me as well. 

Thanks

Sunny